Tax collection of Sindh Excise declines by 69pc

KARACHI - The total tax collection of Sindh Excise Department has declined by 69 per cent during three months of current financial year 2009-10.
The Department has collected Rs3.430b on account of six taxes against proportionate target of Rs4.961b during July-Sept of FY2009-10, depicting a huge decline of 69pc.
The Sindh government set Rs19.846b tax collection target for six taxes, which falls under the purview of Excise and Taxation Dept for FY09-10, which is much higher than the tax target of Rs10.711b in last fiscal, but tax collection increased to 60pc to Rs16.009b in last fiscal year 2008-09.
According to the data available with The Nation, a huge decline of 430.613pc has bee observed in the collection of Infrastructure Cess as total collection of this tax recorded at Rs2.315b during three months of this fiscal year 2009-10 against Rs2.745b of same period of last fiscal year 2008-09.
The three months collection of this tax is also much less than target of Rs3.5b set by dept while the total target of this tax had been set at Rs14b.
Similarly, a modest decline of 14.667pc has been registered in the collection of hotel tax as provincial department has collected Rs27.124m against three months target of Rs62.499m on account of this tax.
However, a significant increase has been observed in collection of Motor Vehicle tax as total collection reached to Rs552.140m against proportionate target of Rs645.006m set for three months of this fiscal, however the total target has been set at Rs2.850b for current FY09-10. A significant growth of 27.130pc witnessed in the collection of Excise Enactment tax as tax collection reached to RS427.035m during July-Sept of this fiscal against target of Rs632.499m set by provincial department.
Meanwhile, a modest decline of 8pc observed in the collection of Cotton Fee as total collection of this levy recorded at Rs22.491m against Rs49.5m tax target of 3 months of current financial year.
According to data, a slightest increase of 8.013pc has been witnessed in the tax collection of Professional Tax as collection of this tax increased to Rs87.decline of Sindh Minister for Excise and Taxation Dept Mukesh Kumar Chawla giving a briefing to media persons on Saturday said that the collection of taxes during initial three months of the fiscal year always remains lowest.
Attributed the slow pace of imports of goods as main reason, Minister said that Infrastructure Cess contributes above fifty percent of all the taxes Excise Dept so, the foreign trade always remain slow during 1st quarter of year.
However, Minister said that revision in the rates and less occupancy of hotels are the main reasons in the decline of hotel tax during first quarter of current fiscal year.